CAT - ['Chennai']
Employment and Labour LawAdministrative and Public Law

ESIC Social Security Officers are entitled to Sixth CPC pay refixation and consequential arrears.

FRANCIS RYALL vs M/o Labour

CAT - ['Chennai']JUDGMENT: September 04, 20264 MIN READSOURCE JUDGMENT
ESIC Social Security Officers are entitled to Sixth CPC pay refixation and consequential arrears.. FRANCIS RYALL vs M/o Labour. CAT - ['Chennai']. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The Applicant, a retired Branch Manager/Superintendent/Social Security Officer (SSO) of the Employees’ State Insurance Corporation (ESIC), was promoted to the relevant cadre on 31 January 2006 and retired on 31 January 2017.

Source reference: p.2

Following the implementation of the Sixth Central Pay Commission recommendations, the ESIC issued an order dated 17 June 2013 extending the benefit of revised pay fixation to employees promoted as SSOs between 1 January 2006 and 31 August 2008.

Source reference: p.2; p.4

Pursuant thereto, the Applicant’s pay was revised by Office Order No. 74 of 2013 dated 18 October 2013, granting him the pre-revised scale of ₹7,450–11,500 and the revised Pay Band-2 with Grade Pay of ₹4,600, with effect from 1 February 2006.

Source reference: p.3; p.5

The benefit was subsequently kept in abeyance by the Respondents on 6 August 2014 pending clarification from ESIC Headquarters.

Source reference: p.2–3

After directions issued in OA No. 525/2015, the ESIC issued an order dated 23 March 2018 declaring the earlier pay fixation invalid and treating the payments made as excess recoverable amounts.

Source reference: p.3

That order was stayed by the Tribunal in OA No. 571/2018 on 15 May 2018.

Source reference: p.3

The Applicant alleged that, despite the stay and the continued benefit being extended to similarly situated employees, the Respondents were seeking to enforce the adverse order selectively against him.

Source reference: p.3
02

Issues

1. Whether the Applicant was entitled to re-fixation of pay in the pre-revised scale of ₹7,450–11,500 and the corresponding revised Grade Pay of ₹4,600 under the ESIC order dated 17 June 2013 and the applicable Sixth Central Pay Commission framework?

Source reference: p.4–5; p.7–10

2. Whether the benefit under the Ministry of Finance Office Memorandum dated 13 November 2009 required fresh pay re-fixation, rather than merely substitution of Grade Pay, for employees placed in the pre-revised scale of ₹6,500–10,500?

Source reference: p.7–10

3. Whether the benefit was confined to the Central Secretariat and corresponding Headquarters/Stenographer Services, or extended to similarly situated ESIC SSOs?

Source reference: p.7; p.9–10

4. Whether the ESIC could withdraw or selectively enforce the adverse clarification dated 23 March 2018 against the Applicant when its operation had been stayed and similarly situated employees continued to receive the benefit?

Source reference: p.2–3
03

Law Applied

The Tribunal exercised jurisdiction under Section 19 of the Administrative Tribunals Act, 1985.

Source reference: p.2

It applied the CCS (Revised Pay) Rules, 2008, particularly Rule 6 and Illustration 4A, concerning re-fixation of pay after revision of the applicable pay structure.

Source reference: p.8–9

It relied upon the Ministry of Finance Office Memorandum dated 13 November 2009, which provided that posts in the pre-revised scale of ₹6,500–10,500, earlier granted Grade Pay of ₹4,200, were to receive Grade Pay of ₹4,600 in Pay Band-2 corresponding to the pre-revised scale of ₹7,450–11,500, with pay to be re-fixed accordingly.

Source reference: p.7–9

The Tribunal also relied on the ESIC’s adoption and implementation of the relevant pay-revision framework and its order dated 17 June 2013.

Source reference: p.4–5

Following the Ernakulam Bench’s decision in OA No. 28/2022 and connected cases dated 30 June 2026, the Tribunal held that the later ESIC clarification restricting or withdrawing the benefit was contrary to the Sixth Central Pay Commission recommendations and could not be sustained.

Source reference: p.6; p.10–11
04

Reasoning

The Tribunal found that the Applicant had already been granted the benefit of the relevant revised pay structure through the ESIC’s Office Order dated 18 October 2013, issued pursuant to the Headquarters order dated 17 June 2013.

Source reference: p.2–3

Applying the reasoning of the Ernakulam Bench, it held that the 13 November 2009 Office Memorandum contemplated actual re-fixation of pay by treating the pre-revised scale of ₹6,500–10,500 as corresponding to the upgraded scale of ₹7,450–11,500, and not merely an isolated enhancement of Grade Pay.

Source reference: p.7–9

The Tribunal rejected the Respondents’ reliance on the 22 December 2010 clarification and related audit objections to restrict the benefit to Headquarters Services, observing that the ESIC had adopted the relevant pay-revision framework and had extended it to SSOs.

Source reference: p.9–10

It further accepted that the subsequent withdrawal of the benefit was based on an erroneous interpretation of the applicable memoranda and that the 2018 clarification could not lawfully defeat the Applicant’s entitlement.

Source reference: p.10–11

The Applicant’s claim was therefore found to be covered by the Ernakulam Bench’s decision and entitled to identical relief.

Source reference: p.6; p.11
05

Holding

The Original Application was allowed.

The Respondents were directed to re-fix the Applicant’s pay in terms of the ESIC order dated 17 June 2013 and to grant all consequential benefits, including arrears of pay, within three months from receipt of the Tribunal’s order.

Source reference: p.11

If the Respondents failed to comply within that period, interest at 6% per annum would be payable on the arrears from the date of expiry of the prescribed period until actual payment.

Source reference: p.11

No order was made as to costs.

Source reference: p.11
06

Acts & Sections Cited

1 provisions across 1 statute referred to in this judgment. Each provision opens on LawLens.

Administrative Tribunals Act, 19851

CAT - ['Chennai']

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FRANCIS RYALLvsM/o Labour

CAT - ['Chennai'] · September 04, 2026

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